Options glossary · Hedging and risk
Trading the underlying against an option position so the combined delta is flat. Buy a call with delta 25 and sell twenty-five shares against it.
Part 3 of the course, Market making: quoting, hedging, risk limits and what a desk does with inventory it did not want. See the course →
The full picture
Sven Hubens, ten years an options market maker at Optiver and Maven, adjunct faculty at The Options Institute at Cboe.
Education, not advice. Amsterdam Investment Club is not licensed by the AFM to give individual investment advice.